A Fib Cluster occurs when there is an exact alignment of two Fib Levels that are measuring different moves in price action. Both the measurements complete at the most recent swing high/low but they will commence at different points.
The following chart highlights this:
- The fib retracement drawing marked "1" has anchor points starting at $12.55 and finishing at $23.345
- The fib retracement marked "2" has anchor points starting at $16.89 and finishing at $23.345.
- There is a clear Fib Cluster of the 382 level of retracement #1 and the Golden Pocket of retracement #2.
Fib Clusters, often act as strong levels of support or resistance.
Dec 14, 2023